1. You want to have $74,000 in your savings account 11 years from now, and you’re prepared to make equal annual deposit into the account at the end of each of the next 11 years. If the account pays 6.30 percent interest, what amount must you deposit each year?
2. To retire as soon as possible, you have decided that you will save $5,000 a year, starting at age 22. You will retire as soon as you can accumulate $1 million. If you can earn an average of 9 percent on your savings, how old will you be when you get to retire?